Broker’s Call: Indo-MIM (Buy)

Indo-MIM Ltd, the world's largest manufacturer of precision engineering components using metal injection molding technology, has a market share of approximately 7% in CY25. The company has established a strong presence in the manufacturing innovation ecosystem in the US, with top US MNCs as clients. Analysts believe that IML has only begun to tap into its potential, with innovative sectors such as humanoids, satellite internet, space travel, aerospace engineering, data centers, and automation equipment for mobile lines presenting significant growth opportunities in the coming years.

The ex-China supply chain for US manufacturing, including substantial capital expenditures by the US Department of Defence for national security initiatives like drone programs, will undoubtedly benefit IML. The company's onsite manufacturing allows it to navigate tariff frictions, with the main constraints to growth being the speed at which it can expand capacities to capitalize on growth opportunities.

With a high share of client wallet, stringent entry barriers, and onsite presence, replicating IML's success may prove challenging. As a result, IML's valuation multiple could be re-rated over the next few years, trading at market multiples or even at a premium compared to MNC cap goods multiples. The report recommends initiating coverage on Indo-MIM with a Buy rating and a target price of ₹1,407, based on the company's Expected Price to Earnings (EPS) multiple.